In China, Lunar New Year ‘A Reminder of Future Uncertainty’: Analyst

Weaker spending, rising savings, and falling home values suggest growing caution among Chinese households.

Visitors walk beneath hanging red couplets and lanterns during preparations for the Lantern Festival at Yuyuan Garden, in Shanghai, China, on Jan. 16, 2026. Andrea Aimar/Hans Lucas via AFP/Getty Images

For generations, the Lunar New Year has been China’s most important spending season—a time when families splurge on lavish reunion dinners, new clothes, festive decorations, and gifts. Firecrackers, packed shopping malls, and bustling open-air markets are traditional signs of the holiday season.

This year, many of these signs appeared noticeably subdued.